News
Beware of too much sharing - Mary Holm
Saturday 21st of August 2004
're letting them use your trailer for a while in exchange for your hiring fee - the interest they pay you.
The bank has a yard full of trailers (deposits). In turn, it hires them out to people who need trailers (mortgages). It charges them a larger hiring fee (mortgage interest) than it gives you, to cover its costs and give it a profit.
What happens if more people want to rent out their trailers to the bank and fewer people want to hire trailers - which is your scenario?
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